Introduction
In 2012 new arrangements regarding the
remuneration of Commonwealth departmental secretaries came into effect. This
paper sets out the revised system. The paper also outlines the separate
arrangements for the secretaries of the parliamentary departments, including
the Clerk of the Senate and the Clerk of the House of Representatives.
Remuneration arrangements for other agency heads (for example heads of
statutory authorities) are not covered by this paper.
For the previous arrangements for
setting the remuneration of departmental secretaries see an earlier version of
this paper, The
remuneration of Commonwealth departmental secretaries.
Background—Remuneration
Tribunal review of the office of secretary
In 2010–11, the Remuneration Tribunal (the
Tribunal) conducted a review of the office of departmental secretary, which
included commissioning a consultant to undertake surveys of the work value
and remuneration of the office. In its two reports
the Tribunal considered various aspects of secretaries’ roles including
classification, remuneration, and work value, and advanced a number of
proposals including:
-
preservation of
the two-tier remuneration structure for secretaries, with a revised
classification of secretary positions between the two tiers and featuring
separate, higher levels of remuneration within tier 1 for the Secretary of
Department of the Prime Minister and Cabinet (DPMC) (proposed tier 1A) and the
Secretary of the Department of the Treasury (Treasury) (proposed tier 1B)
-
three remuneration pay points
within the main stratum of tier 1 and within
tier 2
-
remuneration of
the secretaries of DPMC and Treasury to be determined by the Remuneration
Tribunal and remuneration of other secretaries to be determined by the
Secretary of DPMC, and
-
the phasing-in of the full
remuneration structure by 2014 via staged pay
increases.
The Tribunal
expressed the view (and had done so previously) that secretaries’ remuneration
was inadequate, and identified increased remuneration amounts, both initially
and over time, as part of its proposals. The Tribunal noted that the proposed
remuneration increases were ‘substantial’, but also stated
that:
…
Secretaries' remuneration has been well below where it should have been for
many years. The Tribunal considers it necessary that the remuneration of
Secretaries should now be ‘rebased’ to correct this.
Legal framework for
secretaries’ remuneration
In June
2011 the Remuneration and Other Legislation Amendment Act 2011 (ROLA Act)
was passed by the Parliament (commenced July 2011). The ROLA Act amended a number of Acts including the Public Service Act 1999 (PS Act) and
the Remuneration Tribunal Act 1973 (RT Act) and
introduced a new framework for secretaries’ remuneration. The Act also made changes to the remuneration arrangements for other Australian Public Service offices and for parliamentarians.
The current version of section 61
of the PS Act, as amended by the ROLA Act, provides that:
(1) The remuneration of a Secretary is as provided by
Division 4 of Part II of the RT Act.
(2) The other terms and conditions
applying to the appointment of a Secretary are as determined by the
Remuneration Tribunal under Division 4 of Part II of the RT Act.
The provisions of
Division 4 of Part II of the RT Act (sections 13–16), as inserted by the ROLA
Act, set out the current arrangements for secretaries’ remuneration. Notable
features include a requirement for the Remuneration Tribunal to determine a
classification structure for secretaries and individual classifications of
secretaries, and a division of responsibility between the Tribunal and the
Secretary of DPMC in regard to determining remuneration amounts for
secretaries. The requirements under Division 4 of Part II are summarised below.
Table 1: Current framework for departmental secretaries’
remuneration under Division 4 of Part II of the Remuneration Tribunal Act
1973
|
Decision-maker
|
Classification of secretaries
|
Remuneration and related matters
|
|
Remuneration Tribunal
|
-
must
determine a classification structure for secretaries and periodically
determine secretaries’ classifications within the structure (section 13)
-
may
determine any matters that are, or are considered by the Tribunal to be,
significantly related to the classification structure (section 13)
-
may
hold inquiries for the purpose of performing its functions relating to the classification structure (section 13)
|
-
must
periodically determine remuneration amounts for the secretaries of DPMC and
Treasury consistent with the classification structure (section 14)
-
must
periodically inquire into and determine the employment terms and conditions
(other than remuneration) for secretaries (section 15)
|
|
Secretary of DPMC
|
-
may,
after the Remuneration Tribunal first determines secretaries’
classifications, periodically make recommendations to the Tribunal in
relation to the classifications of particular secretaries (section 13)
|
-
must,
in consultation with the President of the Remuneration Tribunal and the
Australian Public Service Commissioner, periodically assign all departmental
secretaries (other than him/herself and the Treasury Secretary) an amount of
remuneration consistent with the Remuneration Tribunal classification
structure (section 14)
|
Source:
compiled by the Parliamentary Library.
Under section 16 of the RT Act,
determinations made by the Tribunal must: be in writing; come into effect on
the date specified; and must be gazetted and published on the Tribunal’s
website within 14 days after being made. Under section 14, assignments of remuneration
to secretaries by the Secretary of DPMC must also be in writing and also come
into effect on the date specified.
Initial determination
and instrument of assignment—March 2012
In March 2012, the Tribunal issued Determination
2012/06 Departmental
secretaries–classification structure and terms and conditions under the
revised framework. The determination established a new classification structure
for departmental secretaries, classified secretaries within the two tiers, set
total remuneration amounts for the secretaries of DPMC and the Treasury, and
set other terms and conditions of employment for all secretaries. Also in March
2012, the remuneration of secretaries other than the secretaries of DPMC and
Treasury was determined by the Secretary of DPMC in a separate instrument of
assignment.
As foreshadowed in the
Tribunal’s review, the new classification structure comprised two tiers of
remuneration for secretaries including three pay points within tiers 1 and 2
and separate classifications at the top of tier 1 for the Secretary of DPMC (tier
1A) and the Secretary of Treasury (tier 1B) with higher levels of remuneration
than in the main stratum of tier 1. This constituted a change to the previous
arrangements.
Whereas
previously the secretaries of DPMC, Treasury and the Department of Defence
(Defence) had all received the same level of remuneration, now remuneration for
the secretaries of DPMC and Treasury was set on an individual basis and the
Secretary of Defence was no longer classed with either of these secretaries but
was classified to the broader stratum of tier 1.
In relation to the classification of the
Secretary of Defence, the Tribunal had previously expressed
the view that, given the shared accountability between the Secretary of
Defence and the Chief of the Defence Force (CDF), aligning the remuneration of
the Defence Secretary and the CDF was appropriate. The Tribunal determines
the remuneration of Specified Statutory Offices (SSOs) including the CDF, which
is in line with the remuneration structure of the Secretary of Defence.
Determination and
instrument of assignment—June 2013
In June 2013, the Tribunal issued a second
determination and the Secretary of DPMC issued a second instrument of
assignment; both took effect on 1 July 2013 and superseded the March 2012
determination and instrument. The new determination did not alter the
classification structure or the classification of individual secretaries that
had been set out in the March 2012 determination.
Under the Tribunal’s
determination, the base salary is 70 per cent of total remuneration.
The Secretary of DPMC’s instrument
of assignment (June 2013) stated that, in setting the remuneration amounts
for secretaries in tiers 1 and 2, several factors relating to ‘the size and
scope of each of the Offices of Secretary’ were taken into account including:
-
‘the diversity and complexity of the functions and policy responsibilities in the portfolio’
-
‘the scale of the Department’s activities including its human,
financial and material
resources’, and
-
‘the geographic spread of the
Department and whether the Department has responsibility for issues which
impact across government’.
The Secretary of DPMC stated that the setting of
remuneration amounts was ‘not based on the performance of individual
Secretaries’. The
factors listed above have been used for the setting of subsequent instruments
of assignments.
Determination and
instrument of assignment—2014
The Tribunal decided to determine
no annual adjustment to remuneration for offices in its jurisdiction from 1
July 2014. In addition, it decided to defer the final remuneration increases
for a number of offices that had been subject to comprehensive and detailed
review by the Tribunal, resulting in significant overall increases, that had
been phased in over the preceding years. This impacted secretaries, the SSOs,
and a number of full time offices that were granted
remuneration increases as a result of the Tribunal’s major reviews, completed
in 2011 and 2012.
In 2014 the Tribunal issued a
consolidated determination on Departmental
Secretaries–classification structure and terms and conditions.
The Secretary of the DPMC issued an instrument
of assignment on 1 July 2014.
Determination—March
2015
On 31 March 2015 the Tribunal issued a statement
deferring its decision on any increases to annual adjustment to offices in its
jurisdiction until the latter half of 2015. A Determination
was issued to give effect to the Tribunal’s decision that made no annual
adjustment to the remuneration for offices in its jurisdiction. As a result,
remuneration levels remained at the 1 July 2014 level. The Appendix indicates
the classifications, pay points, and actual total remuneration amounts; the pay
points and remuneration amounts include specified six-monthly increases through
to December 2015.
Determination and
instrument of assignment—December 2015
In December 2015 the Tribunal issued
Determination 2015/16: Departmental
Secretaries–classification structure and terms and conditions, which
provided for an increase in remuneration of two per cent for departmental
secretaries effective from 1 January 2016. Part of the reasoning
for the Determination was that the Tribunal was concerned that remuneration for
secretaries, SSOs and a number of full time offices did not once again decline
relative to other public and private sector office holders.
The Secretary of DPMC issued an
instrument of assignment on 23 December 2015, based on the same factors as
previous instruments, with effect from 1 January 2016.[1]
Determination—December
2016
On 7
December 2016 the Tribunal issued Determination 2016/13: Departmental secretaries–classification structure and
terms and conditions. The Determination took effect from 8 December 2016. The
Tribunal did not change the salary levels from the 2015 determination.
Determination—June
2017
On 22 June 2017 the Tribunal issued
Determination 2017/06: Departmental
secretaries–classification structure and terms and conditions, which
provided for a 2 per cent increase in remuneration for departmental secretaries. The
Determination took effect from 1 July 2017.
The Secretary of DPMC issued an instrument
of assignment on 20 February 2018, with effect from 1 March 2018.
Determination—2018
In
June 2018 the Tribunal in a statement
announced an increase to remuneration by of 2 per cent for public offices in
its jurisdiction, with effect from 1 July 2018. The Tribunal issued Remuneration Tribunal
(Departmental Secretaries—Classification Structure and Terms and Conditions)
Determination 2018.
Determination—2019
On 21 June 2019 the Tribunal issued Remuneration
Tribunal (Departmental Secretaries—Classification Structure and Terms and
Conditions) Determination 2019, with effect from 1 July 2019. The
Determination provided for a 2 per cent increase in the remuneration of
departmental secretaries.
The Tribunal
issued an amending Determination in January 2020 updating the
classification of offices of secretaries, with effect from 1 February 2020. The
Secretary of the DPMC issued a new Instrument of Assignment on 29 January 2020, with effect from 1
February 2020. The changes related solely to the names of portfolio
departments.
Determination—2022
On 1 July 2022 the Tribunal issued Remuneration
Tribunal (Departmental Secretaries—Classification Structure and Terms and
Conditions) Determination 2022, with effect from 1 July 2022. On 13
June 2022 the Tribunal had decided an increase of 2.75 per cent for public
offices in its jurisdiction with effect from 1 July 2022. The Secretary of the DPMC issued a new
instrument of assignment on 27 June 2022, with effect from 1
July 2022. The changes related solely to the names of portfolio
departments.
Current
determination
On 28 August 2023 the Tribunal issued the Remuneration
Review Statement–Adjustment that announced a four per cent increase for
public offices within its jurisdiction.
On 28 August 2023 the Tribunal issued Remuneration Tribunal
(Departmental Secretaries—Classification Structure and Terms and Conditions)
Determination (No. 2) 2023 with effect from 1 July 2023.
The Secretary
of the DPMC issued a new instrument of assignment on 12 September 2023, with effect from
1 July 2023. The changes related solely to the names of portfolio
departments.
Table 2:
Current classification structure and total remuneration for specified pay
points
| Level |
Pay
point |
1 July
2023 |
Department |
| Level 1 |
– |
$977,200 |
Prime Minister
and Cabinet |
| Level 2 |
– |
$952,770 |
Treasury |
| Level 3 |
1 |
$928,340 |
Defence;
Foreign Affairs and Trade; Home Affairs; Infrastructure, Transport, Regional
Development, Communications and the Arts |
| 2 |
$879,480 |
Agriculture,
Fisheries and Forestry; Attorney-General’s; Climate Change, Energy, the
Environment and Water; Education, Employment and Workplace Relations;
Finance; Health and Aged Care; Social Services |
| Level 4 |
1 |
$830,620 |
Industry,
Science and Resources |
| 2 |
$781,760 |
Veterans’
Affairs |
Source: Remuneration Tribunal
Determination 2023 and Secretary, Department of the Prime Minister and Cabinet,
Remuneration Tribunal Act 1973 Instrument of Assignment under section 14(3),
12 September 2023.
Parliamentary
departmental secretaries
Part 7 of the Parliamentary
Services Act 1999 (the Act) sets out the appointment and terms and
conditions for the secretaries of the four parliamentary departments: the Clerk
of the Senate, the Clerk of the House of Representatives, the Secretary of the
Department of Parliamentary Services and the Parliamentary Budget Officer. The
terms and conditions of employment of a secretary (other than the Parliamentary
Budget Officer) as set by the Presiding Officers are provided under section 63
of the Act:
63 Terms and conditions of appointment
(1)
The terms and conditions of appointment of the Secretary of a Department are as determined by the Presiding Officers.
(2)
For each determination, the Presiding Officers must seek the
advice of the Remuneration Tribunal and take that advice into account.
(3) Each
determination must be:
(a) published in
the Gazette within 14 days; and
(b) laid before
the appropriate House
of the Parliament as soon as practicable; after the determination is made.
(4) In this
section, appropriate House means:
(a)
in relation to a determination relating to the Clerk of the Senate—the Senate; or
(b)
in relation to a determination relating to the Clerk of the House
of Representatives—the House of Representatives; or
(c) in relation
to a determination relating to any other
Secretary—the Senate and the House of Representatives.
Under section
64X of the Act the Parliamentary Budget Officer is appointed by the Presiding
Officers, with the appointment approved by the Joint Standing Committee on
Public Accounts and Audit (section 64XA) and remuneration determined by the
Remuneration Tribunal (section 64XB).
Under the Act (ss. 38E(2), 63(2)) the
Tribunal provides advice to the Presiding Officers in relation to the terms and
conditions of the Parliamentary Librarian and the heads of the parliamentary
departments.
In October 2012 the Presiding Officers agreed
with the President of the Remuneration Tribunal that the responsibility they
presently have for determining the remuneration of parliamentary service
statutory office holders should move to the Remuneration Tribunal. This
followed the 2012 arrangements for the setting of remuneration and terms and
conditions for certain APS secretaries as discussed earlier in the paper. A
similar move for the parliamentary service office holders would require
legislative change. However this legislative change has not been acted upon.
Table 3:
Current remuneration of parliamentary departmental secretaries
Source:
compiled by the Parliamentary Library; at the time of writing the Determination
for the Clerk of the House of Representatives was not available on the Federal
Register of Legislation.
Appendix: Classification
structure and total remuneration amounts for all departmental secretaries
(effective 1 July 2013 until 31 December 2015)
|
|
Total remuneration
|
|
Tier
|
Departmental secretary
|
Pay point
|
1 July 2013
|
1 Jan 2014 |
1 July 2014
|
|
1A
|
Prime Minister and Cabinet
|
—
|
$760,840
|
$802,820
|
$844,800
|
|
1B
|
Treasury
|
—
|
$746,500
|
$785,410
|
$824,320
|
|
1
|
Defence
|
1
|
$730,120
|
$764,420
|
$798,720
|
Education, Employment and Workplace
Relations
Finance and
Deregulation
Foreign Affairs and Trade
Health and Ageing
|
2
|
$709,640
|
$737,800
|
$757,760
|
Families, Housing, Community Services and
Indigenous Affairs
Human Services
|
3
|
$680,960
|
$698,880
|
$716,800
|
|
2
|
Attorney-General’s
Immigration and Citizenship
Industry, Innovation, Climate Change,
Science, Research and Tertiary Education
|
1
|
$665,600
|
$691,200
|
$716,800
|
Agriculture, Fisheries and Forestry
Broadband, Communications and the Digital
Economy
Sustainability, Environment, Water,
Population and Communities
|
2
|
$649,220
|
$670,210
|
$691,200
|